Barnes & Noble Hit With Derivative Suit Over SEC Probe

Law360, Los Angeles (December 18, 2013, 8:53 PM EST) -- A Barnes & Noble Inc. shareholder launched a derivative suit Tuesday in New York state court, alleging the bookseller's board and executives used insufficient accounting practices that led to the company losing 40 percent of its market capitalization after a government investigation.

The David Shaev Profit Sharing Account sued the company’s directors on behalf of shareholders, accusing them of mishandling the company’s finances and triggering an investigation by the U.S. Securities and Exchange Commission.

“The problems with the financial reporting and inventory management systems are so...
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